The head of the Swiss unit of Credit Suisse said that “some customers have withdrawn some of their money, but very few have actually closed their accounts”.
Last week, the second largest bank in Switzerland said he expects to take a loss of up to CHF 1.5 billion not counting taxes ($1.6 billion) during the fourth quarter, and revealed that wealthy clients made large withdrawals, leading to a large drop in liquidity and violating some regulatory limits.
The announcement plunged the bank’s share price and raised the cost of protecting Credit Suisse’s debt from default.
“In our Swiss division of the bank, customer assets have stabilized and we have lost a total of 1% of our asset base,” Andre Helfenstein said in an interview published on Sunday with the Swiss newspaper SonntagsZeitung.
Several options have been floated as avenues Credit Suisse can take to help it get back on track. Helfenstein said separating the bank’s Swiss business from its international business was “absolutely not an option”.
He also said that the sale of the private client business and asset management division “is also not up for debate”.
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Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
